WallStreetBets traders are pushing risky stocks to all-time highs

A single tweet or a post on Reddit’s WallStreetBets can have significant consequences for individual stocks

The WallStreetBets phenomenon has captured the news cycle in the last week as retail traders are pitted against some renowned hedge funds. What started as a small group on Reddit discussing risky equity positions quickly ballooned into a forum that boasts some 6.2 million members. In the past, markets were moved by earnings reports or announcements of mergers and acquisitions, but these days a single tweet or a post on Reddit’s WallStreetBets can have significant consequences for individual stocks.The prime example is GameStop. Members of WallStreetBets have spent the past three weeks bidding up the video game retailer, causing shares to skyrocket more than 1,200% since January 11.

WSB is a corner of Reddit where users treat markets like a game, make liberal use of profanity, and, in some cases, make tremendous gains in the process of meme’ing stocks to the moon. A peak into WallStreetBest will reveal a few things. Observers will see instances of blind-faith speculation, obscenity-filled posts, and a lot of distrust of the media, Wall Street, brokerages, and the financial “establishment”. However, beneath all of that is also a tight-knit community, and a place where users say they feel like they are standing up to “the man” and to market makers who have rigged the system in their favor. You’ll see small-time investors who have secured profits that will change their lives forever.

Here are 3 of the best recent quotes from WallStreetBets users, lightly edited: Upvote counts are as of 2:29 PM EST on Friday.

  1. “AMERICANS CAN’T BUY GME, BB?!?! HELP IS ON THE WAY!! CANADIANS!! WE HAVE NO SUCH RESTRICTIONS!! BUY ALL THE GME AND BB YOU CAN!!! Not just Canadians!! The whole world is coming to help now!! WE ARE A GLOBAL FORCE TO BE RECKONED WITH!!! HOLD MY BROTHERS AND SISTERS!” – from WSB user ‘SubstantialTent’ 159k upvotes.
  2. “Buy more during dips if you can, but at least hold. We just have to hold until they fold. Today’s actions by several brokers just show how desperate the hedge funds are getting. Hold with your immovable diamond hands for all that you hold dear and we will be breaking Wall Street TOGETHER while making gargantuan tendies in the end!” – from WSB user ‘uwillmire’ 135k upvotes.
  3. “It’s time for a government bailout of GME shareholders at $10,000 per share. This would be roughly equivalent to the $700 billion bank bailout in 08 that was necessary to prevent ‘systemic risk’.” – from WSB user ‘TheHappyHawaiian’ 64.3k upvote.

Source: https://markets.businessinsider.com/

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